Fifth Third Bank Launches Rate Drop Protector for Mortgages

Rhea-AI Summary

Fifth Third Bank has introduced the Rate Drop Protector program to help homebuyers navigate rising mortgage rates. This initiative allows customers who purchase a home between April 1 and September 30, 2023 to lock in current rates. If rates decline, the bank waives all lender closing costs on a refinance within 6 to 24 months, potentially saving up to $1,295.

Head of Mortgage, Jay Plum, emphasized the program's goal of instilling confidence in buyers as they consider purchasing a home amidst fluctuating rates. The bank aims to support customers both now and in the future, reinforcing its commitment to being a trusted financial partner.

Positive

• Introduction of Rate Drop Protector program supports homebuyers amidst rising mortgage rates.
• Potential savings of up to $1,295 for eligible customers refinancing their mortgage.
• Strengthens customer relations by offering innovative financial solutions.

Negative

• None.

CINCINNATI--(BUSINESS WIRE)-- The homeownership journey can be intimidating, especially as mortgage rates have nearly doubled over the past 18 months. To help alleviate concerns about fluctuating rates as the Federal Reserve works to tame inflation, Fifth Third Bank, National Association, is now offering the Rate Drop Protector program.

The Rate Drop Protector program allows prospective homebuyers to purchase a home and lock in rates today, knowing that if rates decrease in the future, Fifth Third will waive all applicable lender closing costs on the subsequent refinance transaction.

“The Rate Drop Protector is another example of how we keep customers at the center of everything we do. We’re watching out for our customers now and in the future,” said Jay Plum, head of mortgage at Fifth Third Bank. “We want our customers to be confident that buying a home today is still a smart financial decision and we’ll have their back should rates decrease.”

How Rate Drop Protector works

• Customers who apply for and purchase a home with an eligible Fifth Third Bank product¹ between April 1 and Sept. 30, 2023, are eligible for Rate Drop Protector.
• If those eligible customers opt to refinance their home between 6 and 24 months from the time of the original purchase closing date, Fifth Third will waive their processing, underwriting, application, origination, or commitment fees, which is a savings of up to $1,295.

“Today’s homebuyers may be weighing whether to buy today or hold off until mortgage rates come back down,” Plum added. “Predicting the direction of interest rates and when to buy a home is never easy but our Rate Drop Protector is a helpful solution.”

To learn more, visit Home Mortgage Loans or talk to a mortgage loan officer at your nearest Fifth Third branch. This Rate Drop Protector offer is not a commitment to lend or lock a rate.

About Fifth Third
Fifth Third is a bank that’s as long on innovation as it is on history. Since 1858, we’ve been helping individuals, families, businesses and communities grow through smart financial services that improve lives. Our list of firsts is extensive, and it’s one that continues to expand as we explore the intersection of tech-driven innovation, dedicated people and focused community impact. Fifth Third is one of the few U.S.-based banks to have been named among Ethisphere’s World’s Most Ethical Companies^® for several years. With a commitment to taking care of our customers, employees, communities and shareholders, our goal is not only to be the nation’s highest performing regional bank, but to be the bank people most value and trust.

Fifth Third Bank, National Association is a federally chartered institution. Fifth Third Bancorp is the indirect parent company of Fifth Third Bank and its common stock is traded on the NASDAQ^® Global Select Market under the symbol "FITB." Investor information and press releases can be viewed at www.53.com. Deposit and credit products offered by Fifth Third Bank, National Association. Member FDIC.

¹ Only eligible for the refinance of conforming Fixed 15, 20, and 30 loans, FHA Loans, (Excluding FHA Assumptions) & 30-year VA loans. This cannot be combined with any other fee waiver specials or offers.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230411005233/en/

Beth Oates (Media Relations)

Beth.Oates@53.com | 313-230-9002

Chris Doll (Investor Relations)

Christopher.Doll@53.com | 513-534-2345

Source: Fifth Third Bank

FAQ

What is the Rate Drop Protector program by Fifth Third Bank?

The Rate Drop Protector program allows homebuyers to lock in mortgage rates today and refinance without closing costs if rates decrease within 6 to 24 months.

When was the Rate Drop Protector program introduced?

The program was introduced for home purchases made between April 1 and September 30, 2023.

What savings can customers expect from the Rate Drop Protector?

Eligible customers can save up to $1,295 on refinancing costs if they use the Rate Drop Protector program.

How does the Rate Drop Protector benefit homebuyers?

It gives homebuyers confidence in their purchase by providing a safety net against future rate decreases.

Is there a commitment to lend with the Rate Drop Protector offer?

No, the Rate Drop Protector offer is not a commitment to lend or lock a rate.